The Other Side of Tourism

By: Brendan McQuade
Posted In: Opinion

Like many Americans each year, I was lucky enough to travel abroad. This winter break I went, with my family, to Peru. We started in Lima, the capital, an old colonial city that now is a sprawling metropolis of eight million. Later, we moved on to the old Incan capital, Cusco, where we saw Incan ruins and later hiked the Incan trail to the massive archeological site Machu Picchu.

The ancient city, nestled in the mists of the cloud forest was the most powerful reminder of the lost civilization of the Incans and the long and tumultuous history of Peru. After Machu Picchu, we were off to the Southern jungle where we went for boat rides down the Madre De Dios River and saw crocodiles, monkeys and several types of birds.

Altogether Peru is a place to visit; the natural beauty tops only the rich history, the friendliness of the natives only begins to match the vibrant and diverse culture. However, of all the sights I saw the poverty hit the hardest-and still resonates the strongest. Throughout my travels I kept asking myself why a country so rich in natural resources is so destitute. After some research, I came to find the answer is because Peruvians do not profit from the wealth of Peru, Western corporations do.

Vincent Copeland wrote the “inexorable law of big business is ‘expand or die.'” It is, then, no doubt that Western corporations would eventually find their way to Peru. Peru, actually, has a long history of Western economic investment. In the days of colonial Spain it was the power center for Spanish South America and an economic hub. After Simon Bolivar and the wars of liberation different investors came to Peru.

First came rubber and mining; now foreign investment is in Peru for the cheap labor and agriculture. Thanks to foreign investment and the cooperation between the government and the IMF and World Bank, growth was strong in 1994-97 and inflation was brought under control. While there was economic growth in Peru, common Peruvians have yet to benefit from it.

Sure the Peruvian ruling elite-who are handing their country’s resources and labor to increasingly aggressive Western corporations-are getting richer. Unfortunately the Incan civilization is not the only piece of Peru lying in ruins.

In the streets of the Lima and Cusco I saw hopeless beggars dying in the streets and young children parading around dressed up in traditional garb asking for money to take their picture. These observations are not unfounded either. Half of Peruvians live below the poverty line, the unemployment rate is high and increasing, and the per capita GDP is less than 5,000 American dollars. Why is Peru in this awful state? The answer is because capitalism needs constant expansion and cheap labor for its existence. There is not much room for growth or cheap labor in the United States so companies have to go abroad.

What is the effect of this? Essentially the working class that props up the Western world’s economy is the third world. Peru is not the only impoverished country in the world, either. To generalize, the sweatshops in Asia, the manufacturing in Mexico, and the cheap labor in and resources of Africa is the same phenomenon as foreign investment in Peru.

The result of this economic investment is when you buy nuts grown in Peru or a sweatshirt made in China that simple decision now has profound moral consequences. Now actions as simple as buying a piece of clothing helps exploit and oppress people a world away. Unfortunately, there is no simple solution to this problem and it is not likely to come soon either. But knowing that the Nike swish is nothing but a whip in mid swing is, at least, a step in the right direction.